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< Back to Latest News Studies Newsletter: Tax Fee Protection Insurance Update (Issue 3)

Talking Tax: March 2022

Author: Mike Scales, TFPI Director

As HMRC step up their compliance and investigations regime, having the right TFPI policy works in favour of better client relationships by providing cover for costs incurred by unexpected tax enquiries.

With very few independent TFPI consultants in the UK, accountancy firms of all sizes are often left with a myriad of biased options.

Zeal is unique in the way we review schemes, not only looking at the whole market and providing a comprehensive overview, but also conducting a practice specific review of individual scheme performance, taking into consideration cover, claims, premiums and supporting services.

This review serves to provide the client with a clear, untainted status of their best options, saving them a huge amount of time, money and effort whilst still giving the practice the final choice of provider.

On average, our clients save 22% of their previous TFPI premiums and always obtain better coverage. Contact mike@gozeal.co.uk for a discussion on how we can improve your TFPI scheme.
#taxfeeprotection #insurance #consultancy #accountants

Market review reinvigorates existing cover

A large accountancy practice based in Hampshire undertakes a review of their TFPI scheme every year using Zeal as an independent resource, not just accepting the existing insurers renewal terms as offered. This is done to ensure that they have the best possible deal in respect of cover and services for their clients. A primary motivation is also the cost of the policy, which directly affects the profitability of the scheme for the practice when sold on to clients. 

Our recommendation

A whole TFPI market review report was provided for their ongoing reference. On negotiation with the alternative TFPI provider we secured a marginally improved policy in both headline value and range of events covered. The competitor provider tendered much better premiums for the whole scheme by some £7k, 35% off the existing cost, and guaranteed for 2 years. We also found similar online technical resources at a better cost from a recognised national market leader in the field.

The result

Zeal was able to negotiate a package that combined cover for both the main and satellite offices. As the client was not unhappy with the existing provider’s coverage and service in general, the alternative provider’s better coverage was not a major consideration in the review process on this occasion. However, the practice then used the alternative provider’s better premiums as motivation against the existing provider to discount their premium by the same margin in order to retain their custom. The client achieved much better premiums than that originally offered and substantially increased their profitability from the scheme with their existing provider. 

Multiple scheme tidy-up for nationally franchised practice

A regional and satellite office for a large national accountancy firm sought a TFPI review to organise and merge multiple pre-existing policies after buying out a small, local practice. The firm was also seeking to streamline their administration process as the schemes already in place were with different insurers and had different renewal dates. One policy was also Client Decide / Voluntary and the other was All Client / Compulsory, adding further difficulty. An evaluation was therefore essential to re-establish the requirements of the practice, clarify which clients were covered by the scheme and which were not, and ensure the firm had the best scheme option at a competitive premium.

For more info or a quote, contact mike@gozeal.co.uk